Audit 364670

FY End
2024-12-31
Total Expended
$21.03M
Findings
14
Programs
15
Organization: Search for Common Ground (DC)
Year: 2024 Accepted: 2025-08-21
Auditor: Bdo USA PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
574100 2024-003 Significant Deficiency Yes I
574101 2024-003 Significant Deficiency Yes I
574102 2024-002 Significant Deficiency - L
574103 2024-002 Significant Deficiency - L
574104 2024-001 Significant Deficiency - L
574105 2024-001 Significant Deficiency - L
574106 2024-001 Significant Deficiency - L
1150542 2024-003 Significant Deficiency Yes I
1150543 2024-003 Significant Deficiency Yes I
1150544 2024-002 Significant Deficiency - L
1150545 2024-002 Significant Deficiency - L
1150546 2024-001 Significant Deficiency - L
1150547 2024-001 Significant Deficiency - L
1150548 2024-001 Significant Deficiency - L

Contacts

Name Title Type
HB7NVH9YCEH1 Wasim Khan Auditee
2027947014 Matt Cromwell Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The reimbursement of indirect costs reflected in the accompanying consolidated financial statements as federal grants revenue is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustment will not be material to the Organization’s consolidated financial position or change in net assets. All of the Organization’s federal awards were in the form of cash assistance for the year ended December 31, 2024. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Search for Common Ground and Subsidiary (the “Organization”) under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Organization.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The reimbursement of indirect costs reflected in the accompanying consolidated financial statements as federal grants revenue is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustment will not be material to the Organization’s consolidated financial position or change in net assets. All of the Organization’s federal awards were in the form of cash assistance for the year ended December 31, 2024. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The reimbursement of indirect costs reflected in the accompanying consolidated financial statements as federal grants revenue is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustment will not be material to the Organization’s consolidated financial position or change in net assets. All of the Organization’s federal awards were in the form of cash assistance for the year ended December 31, 2024.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The reimbursement of indirect costs reflected in the accompanying consolidated financial statements as federal grants revenue is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustment will not be material to the Organization’s consolidated financial position or change in net assets. All of the Organization’s federal awards were in the form of cash assistance for the year ended December 31, 2024. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Criteria or Specific Requirement: In accordance with §200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in a manner providing full and open competition consistent in accordance with §200.319 and must be performed using the appropriate procurement method as outlined in §200.320. In accordance with §200.213 and §180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with §180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under §180.135. Condition: During our compliance testing of the procurement compliance requirement, with respect to ALN # 19.345, for one (1) sample of eleven samples selected for testing, the Organization amended the contract to extend the end date and adjust pricing before verifying and documenting that the vendor was not suspended or debarred. For ALN #19.501, for two (2) samples of the three samples tested, the Organization signed amendments in November 2023 and July 2024, before verifying and documenting that the vendor was not suspended or debarred. The last verification was performed in May 2022. Cause: The Organization did not perform proper suspension and debarment validations when the amendment to the agreement was signed. Effect: Failure to perform procurement procedures in accordance with a written policy that complies with Procurement Procedures as outlined in the Uniform Administrative Requirements could result in the procurement being disallowed. Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the U.S. government. Questioned Costs: None. Context: This is a condition based on testing of the Organization’s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a random sampling method. Repeat Finding: This finding is a repeat finding from prior year. This was reported as finding 2023- 003 in the 2023 Schedule of Findings and Questioned Costs. Recommendation: We recommend that management strengthen the procurement policy to align with the Procurement Procedures outlined in the Uniform Administrative Requirements. Additionally, we suggest providing all staff with additional training on this policy to ensure compliance in the future. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Criteria or Specific Requirement: In accordance with §200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in a manner providing full and open competition consistent in accordance with §200.319 and must be performed using the appropriate procurement method as outlined in §200.320. In accordance with §200.213 and §180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with §180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under §180.135. Condition: During our compliance testing of the procurement compliance requirement, with respect to ALN # 19.345, for one (1) sample of eleven samples selected for testing, the Organization amended the contract to extend the end date and adjust pricing before verifying and documenting that the vendor was not suspended or debarred. For ALN #19.501, for two (2) samples of the three samples tested, the Organization signed amendments in November 2023 and July 2024, before verifying and documenting that the vendor was not suspended or debarred. The last verification was performed in May 2022. Cause: The Organization did not perform proper suspension and debarment validations when the amendment to the agreement was signed. Effect: Failure to perform procurement procedures in accordance with a written policy that complies with Procurement Procedures as outlined in the Uniform Administrative Requirements could result in the procurement being disallowed. Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the U.S. government. Questioned Costs: None. Context: This is a condition based on testing of the Organization’s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a random sampling method. Repeat Finding: This finding is a repeat finding from prior year. This was reported as finding 2023- 003 in the 2023 Schedule of Findings and Questioned Costs. Recommendation: We recommend that management strengthen the procurement policy to align with the Procurement Procedures outlined in the Uniform Administrative Requirements. Additionally, we suggest providing all staff with additional training on this policy to ensure compliance in the future. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR Part 170, Appendix A, under the Federal Funding Accountability and Transparency Act (FFATA), the department is required to collect and report information on each subaward or amendment of $30,000 or more in federal funds in the FFATA Subaward Reporting System. The non-Federal entity or Federal agency must report each obligating action described in paragraph a.1. of this award term to http://www.fsrs.gov. In accordance with the requirements of 2 CFR Section 1402.300, the non-Federal entity is responsible for complying with all requirements of the Federal award. For all Federal awards, this includes the provisions of FFATA, which includes requirements on executive compensation, and also requirements implementing the Act for the non-Federal entity at 2 CFR part 25 Financial Assistance Use of Universal Identifier and System for Award Management and 2 CFR part 170 Reporting Subaward and Executive Compensation Information. Condition: During our subrecipient testing for the major program, we were unable to verify the submission dates of the FFATA Report via the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) website. The Organization was unable to provide evidence of submission, lacking retained documentation that evidenced the actual submission dates of the FFATA reports. Cause: It was determined that the absence of supporting documentation was a result of the FSRS system migration to SAM.gov. The Organization neglected to keep documentation to support submission. Effect: The inability to verify the submission dates of the FFATA reports due to missing documentation may lead to compliance issues with federal reporting requirements. Questioned Costs: None. Context: This is a condition identified per review of the Organization’s compliance with the reporting provisions of the Uniform Guidance. Repeat Finding: This finding is not a repeat finding from the prior year. Recommendation: BDO recommends that the Organization establish a comprehensive system for retaining submission records, including timestamps and confirmation receipts, to ensure all future FFATA report submissions are verifiable. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR Part 170, Appendix A, under the Federal Funding Accountability and Transparency Act (FFATA), the department is required to collect and report information on each subaward or amendment of $30,000 or more in federal funds in the FFATA Subaward Reporting System. The non-Federal entity or Federal agency must report each obligating action described in paragraph a.1. of this award term to http://www.fsrs.gov. In accordance with the requirements of 2 CFR Section 1402.300, the non-Federal entity is responsible for complying with all requirements of the Federal award. For all Federal awards, this includes the provisions of FFATA, which includes requirements on executive compensation, and also requirements implementing the Act for the non-Federal entity at 2 CFR part 25 Financial Assistance Use of Universal Identifier and System for Award Management and 2 CFR part 170 Reporting Subaward and Executive Compensation Information. Condition: During our subrecipient testing for the major program, we were unable to verify the submission dates of the FFATA Report via the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) website. The Organization was unable to provide evidence of submission, lacking retained documentation that evidenced the actual submission dates of the FFATA reports. Cause: It was determined that the absence of supporting documentation was a result of the FSRS system migration to SAM.gov. The Organization neglected to keep documentation to support submission. Effect: The inability to verify the submission dates of the FFATA reports due to missing documentation may lead to compliance issues with federal reporting requirements. Questioned Costs: None. Context: This is a condition identified per review of the Organization’s compliance with the reporting provisions of the Uniform Guidance. Repeat Finding: This finding is not a repeat finding from the prior year. Recommendation: BDO recommends that the Organization establish a comprehensive system for retaining submission records, including timestamps and confirmation receipts, to ensure all future FFATA report submissions are verifiable. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2024-001 Internal Control over Compliance and Compliance with Reporting Criteria: CFR Section §200.328(c) states in part: “The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period.” Condition: The internal controls implemented to ensure the timely submission of the quarterly financial report and quarterly performance report within 30 days after the end of the reporting period did not function as intended. During our testing of reporting compliance, BDO noted that the following reports were not submitted on time due to staff unavailability for preparation and submission: • One financial report (quarter 1) for ALN 19.801 • One financial report (quarter 2) and one programmatic report (quarter 1) for ALN 98.001 Cause: The Organization's internal controls, designed to ensure compliance with reporting regulations, failed to function as intended. As a result, they did not effectively address the requirement to submit financial reports in a timely manner and meet the established deadlines. Effect: The failure of the Organization's internal controls to operate as designed has led to delays in the submission of the required financial reports, potentially resulting in non-compliance with the requirements of CFR Section §200.328(c). Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Repeat Finding: This finding is not a repeat finding from prior year. Recommendation: We recommend that management evaluate the current controls to confirm they are strong and capable of effectively meeting the requirements for timely financial report submission. Additionally, management should ensure there are sufficient staff members available to prepare and submit the reports. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2024-001 Internal Control over Compliance and Compliance with Reporting Criteria: CFR Section §200.328(c) states in part: “The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period.” Condition: The internal controls implemented to ensure the timely submission of the quarterly financial report and quarterly performance report within 30 days after the end of the reporting period did not function as intended. During our testing of reporting compliance, BDO noted that the following reports were not submitted on time due to staff unavailability for preparation and submission: • One financial report (quarter 1) for ALN 19.801 • One financial report (quarter 2) and one programmatic report (quarter 1) for ALN 98.001 Cause: The Organization's internal controls, designed to ensure compliance with reporting regulations, failed to function as intended. As a result, they did not effectively address the requirement to submit financial reports in a timely manner and meet the established deadlines. Effect: The failure of the Organization's internal controls to operate as designed has led to delays in the submission of the required financial reports, potentially resulting in non-compliance with the requirements of CFR Section §200.328(c). Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Repeat Finding: This finding is not a repeat finding from prior year. Recommendation: We recommend that management evaluate the current controls to confirm they are strong and capable of effectively meeting the requirements for timely financial report submission. Additionally, management should ensure there are sufficient staff members available to prepare and submit the reports. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2024-001 Internal Control over Compliance and Compliance with Reporting Criteria: CFR Section §200.328(c) states in part: “The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period.” Condition: The internal controls implemented to ensure the timely submission of the quarterly financial report and quarterly performance report within 30 days after the end of the reporting period did not function as intended. During our testing of reporting compliance, BDO noted that the following reports were not submitted on time due to staff unavailability for preparation and submission: • One financial report (quarter 1) for ALN 19.801 • One financial report (quarter 2) and one programmatic report (quarter 1) for ALN 98.001 Cause: The Organization's internal controls, designed to ensure compliance with reporting regulations, failed to function as intended. As a result, they did not effectively address the requirement to submit financial reports in a timely manner and meet the established deadlines. Effect: The failure of the Organization's internal controls to operate as designed has led to delays in the submission of the required financial reports, potentially resulting in non-compliance with the requirements of CFR Section §200.328(c). Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Repeat Finding: This finding is not a repeat finding from prior year. Recommendation: We recommend that management evaluate the current controls to confirm they are strong and capable of effectively meeting the requirements for timely financial report submission. Additionally, management should ensure there are sufficient staff members available to prepare and submit the reports. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Criteria or Specific Requirement: In accordance with §200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in a manner providing full and open competition consistent in accordance with §200.319 and must be performed using the appropriate procurement method as outlined in §200.320. In accordance with §200.213 and §180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with §180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under §180.135. Condition: During our compliance testing of the procurement compliance requirement, with respect to ALN # 19.345, for one (1) sample of eleven samples selected for testing, the Organization amended the contract to extend the end date and adjust pricing before verifying and documenting that the vendor was not suspended or debarred. For ALN #19.501, for two (2) samples of the three samples tested, the Organization signed amendments in November 2023 and July 2024, before verifying and documenting that the vendor was not suspended or debarred. The last verification was performed in May 2022. Cause: The Organization did not perform proper suspension and debarment validations when the amendment to the agreement was signed. Effect: Failure to perform procurement procedures in accordance with a written policy that complies with Procurement Procedures as outlined in the Uniform Administrative Requirements could result in the procurement being disallowed. Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the U.S. government. Questioned Costs: None. Context: This is a condition based on testing of the Organization’s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a random sampling method. Repeat Finding: This finding is a repeat finding from prior year. This was reported as finding 2023- 003 in the 2023 Schedule of Findings and Questioned Costs. Recommendation: We recommend that management strengthen the procurement policy to align with the Procurement Procedures outlined in the Uniform Administrative Requirements. Additionally, we suggest providing all staff with additional training on this policy to ensure compliance in the future. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Criteria or Specific Requirement: In accordance with §200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in a manner providing full and open competition consistent in accordance with §200.319 and must be performed using the appropriate procurement method as outlined in §200.320. In accordance with §200.213 and §180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with §180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under §180.135. Condition: During our compliance testing of the procurement compliance requirement, with respect to ALN # 19.345, for one (1) sample of eleven samples selected for testing, the Organization amended the contract to extend the end date and adjust pricing before verifying and documenting that the vendor was not suspended or debarred. For ALN #19.501, for two (2) samples of the three samples tested, the Organization signed amendments in November 2023 and July 2024, before verifying and documenting that the vendor was not suspended or debarred. The last verification was performed in May 2022. Cause: The Organization did not perform proper suspension and debarment validations when the amendment to the agreement was signed. Effect: Failure to perform procurement procedures in accordance with a written policy that complies with Procurement Procedures as outlined in the Uniform Administrative Requirements could result in the procurement being disallowed. Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the U.S. government. Questioned Costs: None. Context: This is a condition based on testing of the Organization’s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a random sampling method. Repeat Finding: This finding is a repeat finding from prior year. This was reported as finding 2023- 003 in the 2023 Schedule of Findings and Questioned Costs. Recommendation: We recommend that management strengthen the procurement policy to align with the Procurement Procedures outlined in the Uniform Administrative Requirements. Additionally, we suggest providing all staff with additional training on this policy to ensure compliance in the future. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR Part 170, Appendix A, under the Federal Funding Accountability and Transparency Act (FFATA), the department is required to collect and report information on each subaward or amendment of $30,000 or more in federal funds in the FFATA Subaward Reporting System. The non-Federal entity or Federal agency must report each obligating action described in paragraph a.1. of this award term to http://www.fsrs.gov. In accordance with the requirements of 2 CFR Section 1402.300, the non-Federal entity is responsible for complying with all requirements of the Federal award. For all Federal awards, this includes the provisions of FFATA, which includes requirements on executive compensation, and also requirements implementing the Act for the non-Federal entity at 2 CFR part 25 Financial Assistance Use of Universal Identifier and System for Award Management and 2 CFR part 170 Reporting Subaward and Executive Compensation Information. Condition: During our subrecipient testing for the major program, we were unable to verify the submission dates of the FFATA Report via the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) website. The Organization was unable to provide evidence of submission, lacking retained documentation that evidenced the actual submission dates of the FFATA reports. Cause: It was determined that the absence of supporting documentation was a result of the FSRS system migration to SAM.gov. The Organization neglected to keep documentation to support submission. Effect: The inability to verify the submission dates of the FFATA reports due to missing documentation may lead to compliance issues with federal reporting requirements. Questioned Costs: None. Context: This is a condition identified per review of the Organization’s compliance with the reporting provisions of the Uniform Guidance. Repeat Finding: This finding is not a repeat finding from the prior year. Recommendation: BDO recommends that the Organization establish a comprehensive system for retaining submission records, including timestamps and confirmation receipts, to ensure all future FFATA report submissions are verifiable. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR Part 170, Appendix A, under the Federal Funding Accountability and Transparency Act (FFATA), the department is required to collect and report information on each subaward or amendment of $30,000 or more in federal funds in the FFATA Subaward Reporting System. The non-Federal entity or Federal agency must report each obligating action described in paragraph a.1. of this award term to http://www.fsrs.gov. In accordance with the requirements of 2 CFR Section 1402.300, the non-Federal entity is responsible for complying with all requirements of the Federal award. For all Federal awards, this includes the provisions of FFATA, which includes requirements on executive compensation, and also requirements implementing the Act for the non-Federal entity at 2 CFR part 25 Financial Assistance Use of Universal Identifier and System for Award Management and 2 CFR part 170 Reporting Subaward and Executive Compensation Information. Condition: During our subrecipient testing for the major program, we were unable to verify the submission dates of the FFATA Report via the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) website. The Organization was unable to provide evidence of submission, lacking retained documentation that evidenced the actual submission dates of the FFATA reports. Cause: It was determined that the absence of supporting documentation was a result of the FSRS system migration to SAM.gov. The Organization neglected to keep documentation to support submission. Effect: The inability to verify the submission dates of the FFATA reports due to missing documentation may lead to compliance issues with federal reporting requirements. Questioned Costs: None. Context: This is a condition identified per review of the Organization’s compliance with the reporting provisions of the Uniform Guidance. Repeat Finding: This finding is not a repeat finding from the prior year. Recommendation: BDO recommends that the Organization establish a comprehensive system for retaining submission records, including timestamps and confirmation receipts, to ensure all future FFATA report submissions are verifiable. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2024-001 Internal Control over Compliance and Compliance with Reporting Criteria: CFR Section §200.328(c) states in part: “The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period.” Condition: The internal controls implemented to ensure the timely submission of the quarterly financial report and quarterly performance report within 30 days after the end of the reporting period did not function as intended. During our testing of reporting compliance, BDO noted that the following reports were not submitted on time due to staff unavailability for preparation and submission: • One financial report (quarter 1) for ALN 19.801 • One financial report (quarter 2) and one programmatic report (quarter 1) for ALN 98.001 Cause: The Organization's internal controls, designed to ensure compliance with reporting regulations, failed to function as intended. As a result, they did not effectively address the requirement to submit financial reports in a timely manner and meet the established deadlines. Effect: The failure of the Organization's internal controls to operate as designed has led to delays in the submission of the required financial reports, potentially resulting in non-compliance with the requirements of CFR Section §200.328(c). Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Repeat Finding: This finding is not a repeat finding from prior year. Recommendation: We recommend that management evaluate the current controls to confirm they are strong and capable of effectively meeting the requirements for timely financial report submission. Additionally, management should ensure there are sufficient staff members available to prepare and submit the reports. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2024-001 Internal Control over Compliance and Compliance with Reporting Criteria: CFR Section §200.328(c) states in part: “The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period.” Condition: The internal controls implemented to ensure the timely submission of the quarterly financial report and quarterly performance report within 30 days after the end of the reporting period did not function as intended. During our testing of reporting compliance, BDO noted that the following reports were not submitted on time due to staff unavailability for preparation and submission: • One financial report (quarter 1) for ALN 19.801 • One financial report (quarter 2) and one programmatic report (quarter 1) for ALN 98.001 Cause: The Organization's internal controls, designed to ensure compliance with reporting regulations, failed to function as intended. As a result, they did not effectively address the requirement to submit financial reports in a timely manner and meet the established deadlines. Effect: The failure of the Organization's internal controls to operate as designed has led to delays in the submission of the required financial reports, potentially resulting in non-compliance with the requirements of CFR Section §200.328(c). Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Repeat Finding: This finding is not a repeat finding from prior year. Recommendation: We recommend that management evaluate the current controls to confirm they are strong and capable of effectively meeting the requirements for timely financial report submission. Additionally, management should ensure there are sufficient staff members available to prepare and submit the reports. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2024-001 Internal Control over Compliance and Compliance with Reporting Criteria: CFR Section §200.328(c) states in part: “The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period.” Condition: The internal controls implemented to ensure the timely submission of the quarterly financial report and quarterly performance report within 30 days after the end of the reporting period did not function as intended. During our testing of reporting compliance, BDO noted that the following reports were not submitted on time due to staff unavailability for preparation and submission: • One financial report (quarter 1) for ALN 19.801 • One financial report (quarter 2) and one programmatic report (quarter 1) for ALN 98.001 Cause: The Organization's internal controls, designed to ensure compliance with reporting regulations, failed to function as intended. As a result, they did not effectively address the requirement to submit financial reports in a timely manner and meet the established deadlines. Effect: The failure of the Organization's internal controls to operate as designed has led to delays in the submission of the required financial reports, potentially resulting in non-compliance with the requirements of CFR Section §200.328(c). Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Repeat Finding: This finding is not a repeat finding from prior year. Recommendation: We recommend that management evaluate the current controls to confirm they are strong and capable of effectively meeting the requirements for timely financial report submission. Additionally, management should ensure there are sufficient staff members available to prepare and submit the reports. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.